CUNA Senior Economist Dawit Kebede issued the following statement in response to the Labor Department’s October Consumer Price Index Report:
“Overall prices remain unchanged in October relative to September. The headline inflation over the last 12 months increased by 3.2%, down from 3.7% the previous month. Core inflation – which excludes volatile food and energy items – increased by 4% over the previous year, the smallest increase in over two years.
“Price declines in energy, new and used vehicles are the main drivers for easing inflation in October. The increase in shelter price, which offsets these falling prices, returned to a normal monthly growth of 0.3% after jumping to 0.6% in September.
“The October inflation report is good news for the Federal Reserve determined to bring prices down to its 2% target. Annualized core inflation is down to 2.8%; and core inflation less housing—a lagging indicator—is lower than 2%. A moderating labor market is also another indication that underlying prices pressures are easing. All these indicate that the Federal Reserve may not need further rate hikes to bring prices under control.”